Tennessee 529 Plan

Tennessee offers two 529 college savings plan, one direct plan called Tennessee's Baccalaureate Education System Trust (BEST) Savings Plan, and a pre-paid plan called Tennessee Baccalaureate Education System Trust.

Tennessee's Baccalaureate Education System Trust (BEST) Savings Plan

BEST is a traditional 529 plan that allows you to invest money today and reap tax benefits when you withdraw it to pay for qualified education expenses.

Type:  Direct – this 529 plan can be purchased directly from the state.

Fund Family:  TIAA-CREF

Minimums:  Minimum initial and subsequent contributions are $25 or $15 with payroll deduction.

Maximum Contributions:  Currently, you can contribute up to $235,000 to your Tennessee 529 plan.  Of course, your total amount in the plan can be higher as your investments group.  529 plans typically increase the contribution limit over time, so you may be able to contribute more.

Tax Benefits:  In and out-of-state participants get the federal tax benefits.

Residency:  BEST is open to all United States residents, not just those in Tennessee.

You can learn more about this Tennessee 529 plan at the official website http://www.path2college529.com/.

Tennessee Baccalaureate Education System Trust

Tennessee also offers a pre-paid tuition plan that lets you lock in today's rates for college.   It can be used at any qualified institution of higher education, public or private, anywhere in the country.  However, private and out-of-state college expenses will be prorated and may not be fully covered.

For more information about Tennessee Baccalaureate Education System Trust visit the official website http://treasury.state.tn.us/best/.